Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1887-05-14
PR0FTT.sHARIHG N FRANCE.

E8Vf1T.S0 A6AN0 IN E8ANC6s
lts Great Influence on Industrial RsEerm-
Its Various Tyres and What It Prom
isss.
Boston Herald letter.
Proft-sharing provides no panacsa
for industrial ills. The payment to
workingmen, in addition to the wages
which competition regulates, of fair
share of the profits earned. will not
mirsculousIy transform their mental or
moral character. Such q transformation
must work from within outward, aud
must include other than economical ell
emenis. But profit sharing il a neces-
sary introduction to this fundamental
reform. an indispensable method of es-
ablishing equitable and profitable re-
!ations between employer AMI en-
ployei, and foundation for every
other improvement. in tie con lit on Of
workingmen. SO the history of partici-
patton shows that the 8, stem
has always. in practice, been as
$ GATED with other important reforms.
This is not surprising result. The
more directly the workingmen are in
terested in business the more clearly
it becomes of Importance to the en-
ployer to raise their productive capac-
ity to its highest point. On the other
hand, by arousing their hopes and am
billions, profit-shsring stimulates work
ingmen to make improvements in their
own condition, and to unite cordially
in any such efforts on tho part of their
employers.
Since its introduction, participation
in France has been closely identified
with the formation of provident socie-
ties and benefit clubs among lsboring
men. Wages are usually adjusted to
the cost of living, and the chief value
to the workman of share in the gains
is the assurance which it gives for the
future, in the event of illness, disabil-
ity or death.
Most participating firms distinctly
recognize this principle in their method
of assigning to the employees the share
of profits. Only five business houses
of Importance pay the whole share of
the profits in cash. Some of the most
successful pay moth ng at all in annual
dividends, but profits are capitalized to
the account of the laborer, accumulate
at compound interest, and are only
payable when he has completed large
number of years work for the house
or attained given age, as IS or 20
years. Sometimes, even then, he con-
trolls only the interest of this cap tai;
but in case of his death it Is always paid
at once to his surviving relat yes.
The Compagnie d'Assurance Gener-
ales of Paris has practiced this plan for
thirty-fve years. It assigns only 55
per cent of profits to its employees, but
from 1910 to 1882 the sum allotted to
labor was over $1,O0O,0O0. In four
teen years $1,000 were accumu-
lated by simple book-keeper,
81, 600 by another, and $13, 900 by su-
perior official. M. Alfred de Courcy,
managing director of the company, is
one of the warmest advocates OF the
system. New insurance companies, in
need of experienced management. he ex-
plains, had often drawn away old en-
ployes by promise of increased pay.
"The savings account" he says, "has
put an end to this. It is so highly
priced that one does not lightly sacrifice
the share of profits to momentary gain.
Even faithful servants have become
more industrious, because it is to their
interest that the number of employees
should not be increased. He empha-
sizes the fact that the existence of the
pensioning system facilitates the
prompt dismissal of employees who are
incapacitated by age for profitable
work. "The institution" says M. de
Courcy in 1880, "has now had thirty
years of experience, that is to say, of
unvarying success. Each year, by
augmenting the account of the en-
ploye, makes him feel more strongly
the advantage of the deferred partici-
patton. Each year, too, the company
appreciates better what it gains in
fidelity in return for these sacrifices.
A large number of business houses
combine both plans. They pay q fixed
per cent. annually in money. but re-
serve share Of profts-one-half or
o-thirds-to form pension of retreat.
For instance, the well-known house of
Bilouet Isaac, near Geneva, invests
one-half of the profit assigned to labor
in $40 shares in the company. Some
firms require small contribution from
the workmen to this provident fund.
The type foundry of Deperny ct Gle
and some others provide for small loans
from this fund in cases of immediate
need. The introduction of this savings
reform, one of these employers says, is
the greatest advantage of the profit
aharino regime Some of fhosa firms
which practice deferred participation
invest the provident funds for the BEN
eft of the employees. Others retain
control of them, paying fixed inter
est. It is considered preferable if .
firm do not itself control these benefit
funds, but safe investments are hard to
find. Therefore, French participants
greatly desire the creation of gov
eminent institution where such funds
may be placed, and to draw small,
but secure. rate of interest.
kfsaf,u Waste Of R0eC MQteri0x.